Reuters

Do you know how your credit score is calculated?
Most people don't because it's a trade secret, and the private firms that collect credit data are poorly regulated. You have better chance of reading classified U.S. State Department cables on Wikileaks.

It's troubling that your so-called "FICO" score, which measures your ability to pay back loans and maintain credit, is such a black box. This one number can determine not only your ability to get a mortgage or installment loan, but how much interest you'll pay over time.

How important is your FICO score? Some 90% of banks use it in determining your finance charges. The lower your score, the higher the interest rate. (The highest-possible FICO score is 850, but even people with stellar credit don't tend to exceed 825.)

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Read more: http://www.foxbusiness.com/personal-finance/2011/05/25/credit-scores-mystery/#ixzz1O0AF89Rm